: What is the meaning of writing off loss as goodwill by an impairment charges? AMC has released on June 3rd a preliminary report of their Q1 for 2020. In that report they outline: Net Loss for the first quarter of 2020 to

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What is the meaning of writing off loss as goodwill by an impairment charges?
AMC has released on June 3rd a preliminary report of their Q1 for 2020. In that report they outline:

Net Loss for the first quarter of 2020 to be between ,117.3 million and ,417.3 million, based on
an **impairment charge** related to estimated long lived assets, indefinite-lived intangible assets and
goodwill of ,800.0 million to ,100.0 million, compared to a net loss of 0.2 million for the
three months ended March 31, 2019.

Adjusted Net Loss for the first quarter of 2020 to be 4.5 million compared to 1.8 million in
the same period a year ago. Adjusted Net Loss normalizes results for the impact of fair-value
remeasurement of the derivative liability and derivative asset related to the Company’s Convertible
Notes due 2024 and the impact related to the **impairment of long lived assets, indefinite-lived
intangible assets and goodwill** and removes the income tax impact of the Spain and Germany
valuation allowance.

I understand goodwill as the difference between a certain asset value and the price actual price paid for it. Like in an acquisition of another company for a certain markup. But I do not understand AMC's ability to report a loss of 1.8 to 2.1 billion USD because of "impairment charge related to estimated long lived assets, indefinite-lived intangible assets and goodwill of ,800.0 million to ,100.0 million"

What does that mean? Is that related to losses due to COVID19? Or something else? How does this impact their balance sheet?

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